SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Period Ended June 30, 1996
Commission File Number O-27542
FUN TYME CONCEPTS, INC.
(Exact name of Registrant as specified in its charter)
New York 11-3157259
(State of (I.R.S. employer
Incorporation) identification No.)
290 Wild Avenue
Staten Island, New York 10314
(718) 761-6100
(Address and Telephone Number of Principal Executive Offices)
Check whether the Issuer: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
On September 17, 1996 there were outstanding 2,676,000 shares of Common
Stock, par value $.001 per share.
Documents incorporated by reference: None.
<PAGE>
<TABLE>
<CAPTION>
PART I - Financial Information
ITEM 1. Financial Information. Annexed hereto.
FUN TYME CONCEPTS, INC.
CONDENSED BALANCE SHEETS
June 30, 1996 March 31, 1996
<S> <C> <C>
ASSETS
Current Assets:
Cash $66,596 $32,388
Inventories 14,735 14,735
Prepaid expenses and other current assets 27,635 15,214
Total current assets 108,966 62,377
Property and equipment
(net of accumulated depreciation) 789,917 781,517
Deferred registration costs 226,333 227,433
Other assets 25,324 24,754
Total $1,150,540 $1,096,041
LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses $131,457 $116,717
Customer deposits 15,008 68,196
Current portion of lease payable 16,857 16,857
Loans form stockholders 1,468 1,468
Total current liabilities 164,790 203,238
Deferred officers compensation 30,257 -
Notes payable 200,000 200,000
Capital lease payable (net of current portion) 49,222 38,865
Deferred rent 22,560 22,560
Total liabilities 466,829 464,663
STOCKHOLDERS EQUITY
Preferred Stock - par value $.01, authorized
500,000 shares, none issued and outstanding - -
Common stock - par value $.001, authorized
10,000,000 shares, 1,876,000 1,876 1,876
shares issued and outstanding
Additional paid-in capital 932,189 932,189
Deficit (250,354) (302,687)
Total stockholders equity 683,711 631,378
Total $1,150,540 $1,096,041
The accompanying notes to financial statements are an integral part hereof.<PAGE>
FUN TYME CONCEPTS, INC.
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
JUNE 30,
1996 1995
<S> <C> <C>
Operating revenue $180,804 $169,801
Merchandise revenue 66,208 56,341
Total revenue 247,012 226,142
Operating expenses (211,785) (217,222)
Cost of merchandise sold (34,414) (40,988)
Selling, general and administrative expenses (48,453) (46,019)
(Loss) from operations (47,640) (78,087)
Other expense (4,693) (5,557)
Net(loss) $(52,333) $(83,644)
Net (loss) per share $(.03) $(.05)
Weighted average common shares and equivalents 1,816,195 1,816,195
The accompanying notes to financial statements are an integral part hereof.<PAGE>
FUN TYME CONCEPTS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED
JUNE 30
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net (loss) $(52,333) $(83,644)
Adjustments to reconcile net (loss) to net cash
(used in) provided by operating activities:
Depreciation and amortization 24,312 22,142
Decrease in inventories - 15,664
Decrease in prepaid expenses and other current assets 12,421 11,114
Increase (decrease) in accountspayable and
accrued expenses (44,997) 52,003
Increase (decrease) in customer deposits 53,188 (3,341)
Increase in other assets 570 1,900
(Increase) in deferred registration costs (1,100) (4,900)
Net cash (used in) provided by operating activities (7,989) 10,938
Cash flows from investing activities:
Acquisition of fixed assets (15,912) (7,822)
Net cash (used in) investing activities (15,912) (7,822)
Cash flows from financing activities:
Repayments of capital lease obligations - 2,846
Repayment of notes payable to stockholders 10,357 12,800
Net cash used in financing activities 10,357 15,646
NET (DECREASE) IN CASH (34,208) (12,530)
Cash - beginning of period 66,596 21,633
CASH - END OF PERIOD $32,388 $9,103
Supplemental disclosures of cash flow information
Interest paid 4,693 5,557
</TABLE>
The accompanying notes to financial statements are an integral part hereof.<PAGE>
FUN TYME CONCEPTS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1996
Note A - The Company:
Fun Tyme Concepts, Inc. (the "Company") operates a childrens entertainment
center in Staten Island, New York for children of ages two through twelve under
the trade name "Fun Bubble, Party/Play Center".
Note B - Accompanying Financial Statements:
In the opinion of the Company, the accompanying unaudited condensed financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the financial position as of June 30,
1996, the results of operations for the three month periods ended June 30, 1996
and 1995 and statements of cash flows for the three month periods ended June 30,
1996 and 1995.
While the Company believes the disclosures presented are adequate to make the
information not misleading, it is suggested that these condensed financial
statements be read in conjunction with the Companys registration statement on
Form SB-2.
The results of operations for the three month period ended June 30, 1996 are
not necessarily indicative of the results for the full year.
Note C - Public Offering:
On July 30, 1996 the Company completed its initial public offering whereby it
sold 800,000 units, each unit consisting of one share of common stock and one
common stock purchase warrant, at a price of $6.25 per unit. Net proceeds to the
Company were approximately $3,780,000.
ITEM 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
During the quarter ended June 30, 1996 revenues of the Company were
$247,012 as compared with $226,142 during the comparable quarter in 1995. This
increase of 9.2% was attributable to both an increase in operating revenue (
6.5%) and an increase in merchandise revenue (17.5%). Operating revenues
increased during the quarter ended June 30, 1996 as a result of an increase in
revenues from programs that had just begun during the quarter ended June 30,
1995 and from a new program started during the quarter ended June 30, 1996.
Cost of merchandise sold amounted to 52.0% and 72.7% of merchandise
revenue during the quarters ended June 30, 1996 and 1995 respectively. Cost of
merchandise sold varies based on product mix and value discounts earned.
Operating expenses and selling, general and administrative expenses
(consisting primarily of lease payments, salaries, marketing expenses,
professional fees and other corporate expenses) remained relatively unchanged
for the quarter ended June 30, 1996 as compared with the quarter ended June 30,
1995.
Although operating expenses and selling, general and administrative expenses are
high as compared to total revenue, the Company now has the corporate overhead in
place which will enable it to support additional facilities.
During the quarter ended June 30, 1996 the Company incurred a net loss of
$52,633, or $.03 per share, as compared with $83,644, or $.05 per share , during
the comparable quarter in 1995. The primary reason for the decrease in the net
loss and net loss per share was the increase in total revenue from the quarter
ended June 30, 1995 to the comparable quarter in 1996.
<PAGE>
Financial Condition
As of June 30, 1996 the Company had a working capital deficiency of
$140,861 and shareholders equity of $631,378.
On July 30, 1996 the Company completed its initial public offer as
compared with providing cash of $10,938 during the comparable quarter in 1995.
The Company acquired fixed assets of $15,912 and $7,822 during the quarters
ended June 30, 1996 and 1995, respectively. Cash used in financing activities
decreased from $15,646 during the quarter ended June 30, 1995 to $10,357 during
the quarter ended June 30, 1996.
At this time , the Company does not have any commitments for the
acquisition of play equipment of construction for any additional facilities. The
proceeds from the initial public offering will be used primarily for the opening
of additional facilities and working capital. Although no leases have been
entered into at this point, the Company is conducting feasibility studies and
demographic surveys on prospective future sites.
The Company believes that funds it generates from ongoing operations and
the proceeds from the initial public offering will be adequate to fund its
present operations and any additional operations it plans to commence in the
future.
<PAGE>
PART II - Other Information
ITEM 1. Legal Proceedings. None.
ITEM 2. Changes in Securities. None.
ITEM 3. Defaults Upon Senior Securities. None
ITEM 4. Submission of Matters to a Vote. None
ITEM 5. Other Information. None
ITEM 6. Exhibits and Reports on Form 8-k.
(a) None.
(b) None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned thereunto duly authorized.
Dated: September 17, 1996
Fun Tyme Concepts, Inc.
By: \s\ Daniel Catalfumo
Daniel Catalfumo, President
By: \s\ Richard Rosso
Richard Rosso, Treasurer
